John Reinhardt

Economy Looking Better, Or Worse

When they get married they say, 'for better or for worse.' Well, now we have concluded that we have an economy that is 'for better or for worse.' What do we mean? Well, let's look at the news. In general, outside of the real estate market, the economic news has not been that bad. We had positive employment growth by the private sector last month and initial claims for unemployment are at their lowest levels in the past two months. Though each number was not particularly strong. Retail sales were a surprise on the strong side as it looks as though consumers have returned to the stores. The stock market has rallied during the first third of September, albeit through light Holiday trading.

On the other hand, if we look at the Fed's assessment of the economy known as the beige book, we can pull out this quote for some perspective: 'The economy grew at a sluggish pace through the summer months, and there are now ‘widespread signs' that activity is slowing, the Federal Reserve said in its latest snapshot of regional economic conditions.' So what are we saying: is the economy better or worse? The answer is, some of both. Real estate is actually the key. The real estate slowdown we experienced as the summer progressed is a hangover brought on by the end of the tax credit. The question is: will real estate sales start to grow in the 4th quarter as these residual affects wear off? If not, analysts expect real estate to drag the economy back down. If the real estate market is resilient, the answer will be 'for better,' not 'for worse.' Like marriages, the economy is a tough one to predict.

Not an Ice Cream Cone

They keep talking about the 'double dip' in the news and we just found out that a double dip is not what you do to an ice cream cone! Well, these days, it is always good to introduce some humor when the news is not always great. However, there is some really good news right now. Rates are the lowest they have been all year. That is really saying something, because rates have been very low all year. As a matter of fact, rates on home loans are the lowest they have been in our generation. That is pretty low. Why is that good news? If someone is thinking about purchasing a home or a car or refinancing, it is a great time to move now. Prices are low and rates are ridiculously low. So the time is right. We need more people to buy homes and cars over the next few months so we can avoid a double dip recession. And that would be a very good thing.

What is the bad news? Rates as low as these are indicative of a slow economy. We just need to see one number from this week to demonstrate how slow things are: first-time claims for unemployment insurance went over the 500,000 mark in the past week. While still lower than the heights of the recession, it was the first time we had crossed the 500,000 barrier since late last year. Once people step up their purchases of homes and cars, this will prompt companies to hire more employees. In turn, this will make consumers more confident to purchase more homes and cars. Then the cycle of economic growth will start back up and talk of a double dip will quiet down. And when that happens, we promise rates will go up. We just can't say when. So, for those who are waiting for the economy to get better, it will be costing more for you to spend if you are behind this curve. The trend setters will just buy their ice cream now while there are enough sprinkles to double dip.

POTENTIAL SHORT SALE IN A FABULOUS NEIGHBORHOOD! INGROUND HEATED POOL 3-6FT DEPTH W/ PEBBLETECH, AND SALT WATER CLEANSING SYSTEM, HUGE, FENCED BACKYARD, NATURAL GAS LINE RAN TO THE GRILL AREA, SCREENED-IN PORCH, SPACIOUS MASTER ON THE MAIN W/GORGEOUS MASTER BATH, DOUBLE VANITY, OVERSIZED WALK-IN SHOWER, LEADED GLASS WINDOW, GOURMET KITCHEN W/FRENCH COUNTRY CABINETRY, JENNAIRE DOUBLE OVENS, GE MICROWAVE, GAS COOKTOP, HUGE WALK-IN HIDDEN PANTRY, VAULTED KEEPING RM W/FPLC, 2-STORY VAULTED GREAT RM, OFFICE/DEN ON MAIN, LG SECONDARY BDRMS, HUGE BONUS RM, 3-CAR GARAGE, PLUS

Features

Bedroom: Master On Main, Split Bdrm Plan	Master Bath: Double Vanity, Sep Tub/Shower, Whirlpool Tub
Kitchen: Breakfast Area, Breakfast Bar, Cabinets Other, Counter Top - Stone, Keeping Room, Pantry - Walk-in	Dining: Separate Dng Rm	Setting: Other
Const: Brick & Frame, Cedar	House Faces: Unknown	Tennis on Prop: No	Pool: Heated Pool, In Ground
Parking: 3 Car Garage, Attached, Auto Garage Door	Road: Paved	# FP: 1
Rooms: Bonus Room, Family Room, Great Room, Screened Porch
Basement: Slab/None	Home Warranty: Yes
Lot Size: 1/2 To 3/4 Acres	Lot Desc: Corner, Level, Private Backyard	Lot Dimensions: .62
Green Building Certification:	HERS Index:

Other Descriptive Information

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Nbrhd - Cable Tv Avail Nbrhd - Homeowners Assoc Nbrhd - Sidewalk Nbrhd - Street Lights Nbrhd - Undergrnd Utils Appl - Dishwasher Appl - Double Ovens Appl - Gas Ovn/Rng/Ctop Appl - Microwave	Appl - Self-Clean Oven Int - 2-Story Foyer Int - Double Vnty Other Int - Entrance Foyer Int - Hardwood Floors Int - His & Her Closets Int - Trey Ceilings Int - Walk-In Closet(s) Int - Wall/Wall Carpet	Ext - Fenced Yard Ext - Patio Ext - Prof Landscaping Hcap - None Fplc - Gas Starter Fplc - In Keeping Room Heat - Forced Air Heat - Gas Cool - Central Electric	Enrgy - High Eff System Water - Public Water Sewer - Septic Tank Laundry - Laundry Room

Legal, Financial & Tax Information

<!-- <tr> <td><b>Mgmt Co: </b></td> <td><b>Mgmt Phone: </b></td> </tr> -->

Tax ID: 15N26D-00000-023-000	LandLot: 467	District: 15	Section/GMD: 2	Lot: 23	Block: 0
Plat Book/Page: 85/5	Deed Book/Page: 8635/234	Tax/Tax Yr: $3760/2009	Sq Ft: 3,367	Sq Ft Source: Tax Record
Special: Potential Short Sale	Owner Finance: N	Owner Second: No	Assumable: No
CPHB:	Annl Master Assoc Fee Desc: $0	Assessment Due/Contemplated: No
Swim/Tennis: $ /	Annl Assoc Fee: $ /	Initiation Fee: $	HOA Phone:
Mgmt Co:	Mgmt Phone:	Mgmt Email:

Sold Information

Sale Price: $	Due Diligence Ends:	Closing Date:	Binding Agreement Date:
Original List Price: $ 299,900	Prop Closing Date:
SP/OLP %: 0%	Costs Paid by Seller:	Terms:
Sell Agent ID:	Sell Agent:	Lender Mediated:	Sell Office:

Sun, Aug 22, 2010 11:12 AM	The accuracy of all information, regardless of source, including but not limited to square footage, is deemed reliable but not guaranteed and should be verified through personal inspection by and/or with the appropriate professionals. © 2002-2010 FMLS	Requested By: JOHN REINHARDT

First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law. As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years. The closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions, especially short-sales, which is a more involved process. 'By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said. It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest

John Reinhardt

www.infrontmarketing.com

Stages of foreclosure

The foreclosure process begins when a financial distressed homeowner fails to make a loan payment and is served with a summons from his or her creditors. After service, papers will be filed with the county clerk's office and be made a matter of public record. This notice is usually known as Lis Pendens, which is Latin for "pending legal action." At this point, any attempts by the homeowner to borrow from public credit sources will be met with a negative response. On completion of the publication process, the foreclosure action will be permitted to proceed and the owners have a limited amount of time to pay up, sell, or make other deals with creditors. If none of these actions are taken, a foreclosure sale will take place. If no one bids the amount owed, the property reverts to the lender and becomes an REO (real estate owned) property held in inventory by the lender. Experienced foreclosure investors may work in all of these various stages, but the possibility of making a transaction with the homeowner is no longer possible after the property is an REO.

Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank negative equity: the minimum bid in most foreclosure auctions equals the outstanding loan amount, the accrued interest and any costs associated with the foreclosure sale including attorneys' fees.

(Notes) What's & REO: After an unsuccessful auction, the bank will go through the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a Realtor. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real estate investors will often go after these properties as banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.